Category 2 Gibraltar: An Intelligent decision for High Net Worth Individuals

Category 2 Gibraltar

This solution is optimal for those whose assets exceed two million pounds sterling and who need tax residency in this territory with no minimum stay requirements. Once the application is approved, a “Category 2 Gibraltar Individual” certificate, a tax identification number, a residence permit, and a Civil Registration letter will be obtained.

Then, a flat tax rate of £37,000 per year plus property rental and real estate costs (approximately £23,000 per year) must be paid.

This is the best option for those who have an international lifestyle (staying in different nations for less than 183 days a year in each)

The advantages of this Category 2 Gibraltar include zero tax on all income and savings outside Gibraltar. Tax is only levied on salaries and business income or dividends of any kind in Gibraltar. The maximum taxable income is £80000 and the maximum amount of tax is set at £27500. Any income over £80000 will not be taxable in Gibraltar.

Citizenship in Gibraltar

Gibraltar is a British territory and therefore anyone wishing to apply for citizenship in Gibraltar must do so through British citizenship. He or she will eventually become a resident of the United Kingdom.

British nationality can normally be acquired if the person was born in the UK or by introducing any Gibraltarian relatives or ancestors (grandparents).

To find out what type of British citizenship you could get, it is necessary to make an analysis of your family lineage. It will then be possible to apply for nationality under the laws of Gibraltar.

It will be possible to “enlist” as a British inhabitant on the rare occasion that you have a British identity and are not an occupant or resident of any other country.

To apply for British citizenship you must:

• Have a genuine British identification document.
• Have a certificate of good conduct from the Royal Gibraltar Police. If you have outstanding matters such as taxes, rent or fees payable, or any other commitments to the Government, you will need to settle them.
• You will need to provide evidence that you have taken the necessary steps to settle these debts.
• You must have a certificate of residence acquired at the Civil Registry office, in the immigration section. This requirement will not be requested if you have been naturalized as a citizen of a British Overseas Territory.
• Present your identification card or your Civil Registration card together with a document detailing your social contributions.
• Protective contributions with liabilities paid for the duration of your business.
• State that your objective is to make Gibraltar your permanent home. This can be stated in the application.

How to obtain a Category 2 Gibraltar Certificate

Obtaining a Category 2 Gibraltar Certificate is a crucial step for entities seeking to establish themselves within the financial services sector in Gibraltar. This certification enables businesses to operate within the jurisdiction while adhering to the necessary regulatory standards set forth by the Gibraltar Financial Services Commission (GFSC). Here’s a comprehensive guide on how to obtain a Category 2 Gibraltar Certificate:

1. Understand the Requirements: Before initiating the application process, it’s essential to thoroughly understand the requirements set by the GFSC. These requirements typically involve demonstrating financial stability, appropriate governance structures, competent management, and a clear business plan.
2. Engage Legal and Regulatory Experts: Given the complexity of the regulatory landscape, it’s advisable to engage legal and regulatory experts specializing in Gibraltar’s financial services sector. These professionals can provide invaluable guidance throughout the application process, ensuring compliance with all relevant regulations and requirements.
3. Prepare Documentation: The next step involves preparing the necessary documentation to support the application. This may include detailed business plans, financial statements, organizational charts, compliance manuals, and other relevant documents demonstrating the entity’s suitability for Category 2 certification.
4. Submit Application: Once all documentation is in order, the application can be submitted to the GFSC for review. It’s essential to ensure that the application is complete and accurate to avoid any delays in the approval process.
5. Undergo Due Diligence: As part of the application review process, the GFSC will conduct thorough due diligence on the applicant. This may involve background checks on key personnel, assessments of the entity’s financial standing, and evaluations of its risk management processes.
6. Address any Queries or Concerns: Throughout the application review process, the GFSC may raise queries or concerns that need to be addressed promptly. It’s crucial to respond to these inquiries in a timely and comprehensive manner to facilitate a smooth approval process.
7. Obtain Approval: Upon successful completion of the application review process and satisfaction of all regulatory requirements, the GFSC will issue the Category 2 Gibraltar Certificate, allowing the entity to commence operations within the jurisdiction.
8. Comply with Ongoing Obligations: Once certified, it’s important for the entity to continue complying with all ongoing regulatory obligations set by the GFSC. This may involve regular reporting requirements, compliance audits, and adherence to evolving regulatory standards.

By following these steps diligently and seeking appropriate professional guidance, entities can successfully obtain a Category 2 Gibraltar Certificate and establish themselves within the jurisdiction’s financial services sector.

Application for Property Approval

• The applicant for the Category 2 Gibraltar certificate must submit a ” Residence Permit Form “. At the time of application or within two months of the issuance of the Category 2 certificate, the person must provide a copy of the respective property title or lease.
• No exclusion for previous residence and activity: during the last 5 tax years, the individual must not have been resident in Gibraltar or have had a business or employment relationship in Gibraltar.
• Good standing: The person must provide 2 references of recognized and established professional character (one from a bank and one from a firm of lawyers or accountants), a copy of his passport, a curriculum vitae, and proof of financial solvency.
• The Ministry of Trade and Industry may request further information in individual cases before approving the application.

If you would like to know more, please contact our partner CORNWALLS

CENTURY 21 GIBRALTAR is your trusted real estate agency that can provide you with all the services you need to find your ideal home and the advice you need.

We have available these Cat2 Gibraltar Properties in Ocean Village.

The perfect opportunity to turn these two apartments as one. Ocean Spa Plaza, Two apartments for sale as one, the perfect home to suit your lifestyle.

Contact us today and take the first step, we will do the rest. 

Tel: +350 5652 3000 – Email: info@century21gibraltar.com

Living in Gibraltar